Analyst Says EA Invested $500 Million into Star Wars: The Old Republic

MMOs are expensive, man. That’s according to Cowen & Co analyst Doug Creutz, who recently told MarketWatch that while Electronic Arts and BioWare probably did everything they could to keep costs down and hedge their bets over Star Wars: The Old Republic‘s success, the enterprise of making a massively multiplayer online game is really, really costly.

That’s why Creutz figures EA spent around $500 million to put the game together.

That’s quite a bit more than was estimated last year by Wedbush Securities analyst Michael Pachter, who pegged EA’s investment then at $80 million.

Already, EA has said that about 1 million players have hooked up with SWTOR, and by the end of the week, they should have to start paying their subscription fees. If we assume that million paid $60 each for their copies of SWTOR and go on to play for another month, EA and BioWare will have earned $75 million of their money back. They’ll need subscriptions for a million players for another 28 months — better than two years — to recoup all those expenses.

Somehow, that half-billion figure seems a little dubious to me.

Via VG247.

Join the Conversation   

* required field

By submitting a comment here you grant GameFront a perpetual license to reproduce your words and name/web site in attribution. Inappropriate or irrelevant comments will be removed at an admin's discretion.

5 Comments on Analyst Says EA Invested $500 Million into Star Wars: The Old Republic

lol

On January 17, 2012 at 3:41 pm

I think it’s possible, SWTOR has the most voice acting EVER IN HISTORY

Voice acting is expensive as (from what I’ve heard anyway) and I’ve yet to hear the same voice twice in quest or even just general npc chatter.

Phil Hornshaw

On January 17, 2012 at 3:44 pm

@lol

Possible — yes. Definitely. But I think that’s too big an investment even for EA. Even with a million players, which is a fair number, that’s a ton of money to potentially never get back. Sure, they’re looking at the long view for SWTOR, but that still seems like an awfully long time to justify to investors to wait to see a profit. I think the investment is high, I just don’t know if it’s half a billion high.

Shezzle

On January 17, 2012 at 5:05 pm

Maybe thats why they arent fixing any of the games problems.
Already cost too high.Cut losses, make what you can then shift to f2p for added income from the sheeple.

josh

On January 17, 2012 at 10:58 pm

Just stop with how good the voice acting is and how good the story is… Okay enough is enough, this game is buggy as all hell, the graphics are alright at best and frankly its going to suffer the same death as a lot of these other mmos, but this death will be even slower and harder to swallow because of all the blind faith star wars fans. By this time next year it will be f2p.

Russell

On January 18, 2012 at 6:31 am

I think the graphics fit the game perfectly and the environments are look very well detailed. If 1 million people subscribe for 10 months, that is 150$ million they get just from subscriptions, not even counting the money from sales of the game.